To Be or Not to Be a Bank Holding Company

Non-bank financial services companies are considering bank holding company status to take advantage of far more than TARP - but watch those pitfalls

Recently much has been written about high profile non-bank financial institutions applying for and receiving permission to become bank holding companies (BHC). The most obvious and highly publicized objective for becoming a BHC is to gain access to Troubled Asset Relief Program (TARP) money. Investment banks, credit card companies and other grantors of credit face the same credit-related issues as commercial banks and are seeking the same assistance. However, beyond TARP becoming a BHC gives access to other potential asset guarantee programs and liquidity assistance from the Fed Discount Window.

Capgemini has extensive experience assisting clients with the business and regulatory aspects of a successful migration to bank holding company status. From strategy development and the application process to ongoing compliance and risk management, Capgemini’s seasoned professionals have expertise across all phases of the migration.